Random left a comment on Greek debt crisis solved: Greece to issue "Sun and sea vouchers":
Can they be used to pay taxes? ;)
Obviously. The vouchers are pre-paid tax.
Having issued the vouchers, the Greek government has to force the tourism industry to honour them by levying a tourism tax payable in vouchers (just like any other vouchers - be they rationing vouchers, nursery vouchers or coins and notes).
So, for example...
Tour operators buy the vouchers from The Troika for near face value and use them to part-pay the airline companies and hotel owners.
Airline companies have to pay a certain number of vouchers for the right to land a planeful of tourists; hotel owners have to pay a certain number of vouchers each year, depending on how big or favourable their site is. Or the government just levies a fairly high nominal tax rate on them and accepts the vouchers in lieu of cash payment.
The airline companies and hotel owners can keep the cash element (their "net of tax" income) and give the vouchers back to the government as "tax".
The government then chucks the vouchers on a bonfire.
Monday, 6 July 2015
Greek "Sun and sea vouchers": Part 2.
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9 comments:
"the Greek government has to force the tourism industry to honour them by levying a tourism tax payable in vouchers (just like any other vouchers - be they rationing vouchers, nursery vouchers or coins and notes)."
OK. I see how this could possibly work.
R, of course it would, it's LVT in disguise.
Why not exit the eurozone and just introduce LVT in drachmas?
I think it is also some sort of airline duty in disguise.
What if there is a lack of tourism one year? Then you are screwed!
"So Greece will be redeeming its national debt by giving away value which they themselves get for free."
Right, but the national debt is a stock made of flows. It will increase again.
Sure this will "pay off the debt" but how will Greek spending be paid for? Still in Euros?
R, so many questions to which you know the answers...
why not exit the eurozone etc? I see no reason why not.
Yes it is airline duty and LVT in one, but landing slots are "land" so it's the same thing really.
There won't be a lack of tourism one year, the tickets have already been sold so people will turn up. Possibly the price people are prepared to pay for the vouchers will fall. But the tax will be a set number of vouchers (the value of which varies) so that side sorts itself out.
If they are stupid and run up big debts again there is no helping them.
Which currency they use is irrelevant. The value of "sun and sea" is the same, you can express it in any currency you want.
Where can I purchase one of these Sea Vouchers?
JH, they will be available from your travel agent for a price of +/- €500
I mean if for some reason there are riots or whatever people decide not to come. So the tickets become less valuable?
I'm not trying to screw up your idea, just trying to find any flaws in it.
R if that happens they are doomed anyway.
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